Highlights for Herencia Resources LON:HER:
-- An ongoing XRF surface sampling program at Picachos has confirmed further high grade copper mineralisation— Sampling to the east of the 40M Shaft and the Santa Rosa mine resulted in multiple high grade zones
— At the 40M Shaft, high grades were identified immediately up-dip from where earlier drilling had intersected deeper high grade copper mineralisation. This supports the view that this mineralisation can extend all the way to surface.
-- Many of the new areas sampled fall within the proposed open pit at Picachos— Updated geological-structural mapping together with recent sampling have confirmed the existence of shallow copper mineralisation over 1,200 metres extending from south of 40M Shaft through Flor del Bosque to La Ñipa.
Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, has told DirectorsTalk that further surface sampling at its advanced Picachos Copper Project in central Chile, has identified high grade copper mineralisation in a number of new areas immediately adjacent to the proposed open pit mining operations.
The extensive surface sampling program using the hand held XRF analyser and undertaken by company geologists focussed on mineralisation at 40M Shaft East, Flor del Bosque, La Ñipa, Santa Rosa and the southern tenement areas, following several parallel mineralised structures and three limestone-bearing sequences.
Whilst these results are indicative of the presence of mineralisation in a selection of rocks at the surface, the high grade results in the 40M Shaft East area and mapping of additional mine workings confirm the continuity, at shallow levels, of the copper grades seen in diamond drill hole DDH14003 which returned 117m at 1.14% copper from 182m and which included higher grade intervals of 18m at 1.53% copper from 184m, 9m at 2.02% copper from193m, 16m at 1.50% copper from 213m, 10m at 1.95% copper from 254m, 10m at 2.00% copper from 268m and 11m at 2.21% copper from 288m (refer RNS dated 18 December 2014).
The significance of this is that the area of the proposed open pit immediately to the east of the 40M shaft which was previously modelled as waste could be potential high grade mineralisation based on the excellent results from the latest sampling program and the structural interpretation of this area.
Significant results from the sampling program, including the highest result of 24.8% copper in the 40M Shaft area, are attached in Table 1 http://www.rns-pdf.londonstockexchange.com/rns/0761X_-2015-8-25.pdf. and on a diagram available on the Company’s website at www.herenciaresources.com and attached here:
http://www.rns-pdf.londonstockexchange.com/rns/0761X_2-2015-8-25.pdf
An extensive geological and structural mapping program was undertaken in conjunction with the most recent sampling which has confirmed the existence of shallow copper mineralisation over a strike length of 1,200 metres – extending from south of the 40M Shaft through Flor del Bosque to La Ñipa. A similar geological structure has also been identified between Santa Rosa, Rancho 4 and 40M Shaft East.
Managing Director, Graeme Sloan, commented: “It is always pleasing to see consistent and extensive high grade copper values on the surface, especially when associated with deeper drilling showing mineralisation. In many ways this latest program confirms the prospectivity of Picachos and potentially opens the door to a multiple open pit scenario which could provide the Company the all-important flexibility and optionality needed for production. This in turn could lead to better use of equipment, higher productivity and an overall lower operating cost.
Many of the high grade copper samples in the 40M Shaft East area are located immediately above and adjacent to an already defined JORC mineral resource where our own diamond drilling (the most accurate and expensive of all drilling), has confirmed large zones of high grade copper and silver mineralisation.
Our indicative open pit mine studies have modelled the majority of the area to the east of the 40M shaft as waste, however if we are correct and this area is mineralised then it could have a significant impact on pit economics with more ore and less waste which would be a great outcome.
In conjunction with the latest sampling program, the team have continued to progress in many areas including mine studies, approvals, mapping and a re-interpretation of the Picachos geology in preparation for mine development. We will look to provide further guidance over the coming weeks.”
About the Picachos Project
The Picachos Project is located approximately 50km south of the coastal city of La Serena, 8km west of both the existing Andacollo copper-gold project operated by Teck Resources and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine. The Project is very well positioned for infrastructure with existing high voltage power located approximately 3km east of the Project area and serviced by two all-weather access roads.
Small scale mining is currently being undertaken by private miners via small open pit and underground mining operations. Ore is being trucked to a Chilean government owned processing plant (ENAMI plant) where it is processed. This mining will continue up until such time as the Option to fully acquire Picachos is exercised (at Herencia’s discretion) and is seen by the Company as an excellent mechanism to achieve geological and grade data across many zones of mineralisation.
A review of available data and recent site visits have identified up to six separate zones of mineralisation. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place at Picachos. Historic mining has focused mainly around the high grade structures, however in some areas the mantos has been mined up to 50m wide. Mineralisation generally commences from one to five metres below the surface and appears open at depth.
